Tiếng ViệtIn recent years, the import and export industry has been on the rise of leaps and bounds, and career opportunities have therefore become extremely open. If you are a student or are oriented to pursue the import-export industry, you must have heard the term import-export balance. Sinovitrans will help you learn what the import-export balance is and the formula for calculating the import-export balance right in this article.
1. What is the import-export balance?
Import-export balance is basically understood as a comparison table between the total export value (export turnover) and the total import value (import turnover) of a country at a certain period. In which, if the value of exported products is larger, it is called a trade deficit, and if the value of exported products is larger, it is called a trade surplus.
Import and export activities in our country are becoming more and more exciting, which helps lead to the strong growth of the logistics industry. Many young people choose import-export jobs as their future careers. Having a deep understanding of the import-export balance – an industry term will help you be more productive.
2. The roles of the import-export balance
The balance of imports and exports will reflect the relationship of import and export activities. Specifically, the role of the balance of entry and exit is as follows:
For export activities: The balance of imports and exports will promote the growth of the economy, thereby increasing domestic consumption. When export and import activities make a profit, they can be reclaimed to use for import production activities
For import activities: Promote the process of industrialization and modernization, increase the source of goods, open up the diversity of goods and services for consumers, and meet the market demand.
3. Factors affecting import-export balance
The balance of imports and exports will be affected by many different factors, namely:
3.1. Export factor
Consumer demand always changes at different times, this demand is always unstable, influenced by a number of factors such as: time, economy, market,… So the following aspects of exported goods will have different effects on the balance of imports and exports.
3.2. Import factor
The import demand of samples of goods that have not been sold or sold in the country, causing the balance of imports and exports to change. As GDP increases, so does import demand. Sometimes the demand for imports will be influenced by the selling price of the exported goods. When domestic goods tend to increase in price, foreign goods still have stable prices or slightly fluctuate, import turnover will also tend to increase.
3.3. Exchange rate
One of the factors that strongly affect the balance of imports and exports is the exchange rate. A change in the exchange rate of a country’s domestic currency will affect all imports and exports of that country.
Read more: What is import and export? Basic concepts of import and export industry
4. The calculating for the import-export balance
The balance of imports and exports will be calculated based on the difference between the value of exports and imports. Specifically, the calculation of the import-export balance is as follows:
Import-Export balance (Import) = Value of exported goods – Value of imported goods
In there:
The value of exported goods is the value of goods that have been sold to the international market
The value of imported goods is the value of goods imported from abroad to meet the needs of domestic consumption, business and trade of users and restaurants.
5. The situation of import-export balance in Vietnam
The structure of import and export in Vietnam is divided into many different categories and products, creating the structure of the import and export market. Specifically:
The structure of import and export goods shows the correlation of goods with a correlation ratio to the import and export market. Some of the forms to mention are:
– Specialized export goods by industry.
– Goods exported by function.
– Goods for export according to technical level.
The structure of the import and export market is divided according to the economy of each state and the market to which the goods are directed. The relationship between countries will greatly affect the trade and import and export market structure of goods. Some of the factors that promote this structure must be mentioned: political, economic, cultural,…
Currently, Vietnam is considered one of the countries with a large volume of import and export goods in the region. Changing the balance of imports and exports will be an inevitable trend for the economy to develop sustainably. When changing the structure of import and export, Vietnam’s economy can provide opportunities for outstanding growth, accompanied by an increase in import and export volume.
6. Conclusion
Above is most of the information you need to know about the import-export balance. Hopefully these articles will bring a lot of useful information to those of you who have been working in the import-export industry.